Venture rises 13.9% after it reports 61% earnings increase

(Aug 14): Venture Corp’s shares opened 3.5% higher at $14.36 on Aug 7, the first trading day after the company released stellar results for 2Q. Earnings at the technology products and solutions provider surged 61% to $69.8 million, from $43.3 million in 2Q2016. Revenue increased 48.3% from $683.3 million to $1 billion. Net margins also showed improvements, moving up to 6.9% in 2Q2017 from 6.4% in 2Q2016.

The company’s chief financial officer, Ng Chee Kwoon, declined to name a specific revenue driver, merely saying: “Revenue improvements have been broad-based, with the majority of customers recording y-o-y improvements.” Ng also attributed some of the gains to changes within the company, although he did not elaborate. “Because of all these things that we are doing, [we have seen] some success... with some of the segments and customers in different fields. [So] our margins have also gone up,” says Ng.

“Frankly, to grow margins and revenue is not easy for a lot of our peers. Even if they can grow revenue, the [margins] can go in the other direction. But for us to be able to grow revenue, hold our margin and further improve on it means there’s actually something we are doing different from our peers.”

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